Housing Affordability and Redevelopment Conflicts in Florence: Balancing Tourism and Resident Needs

As the Chief Marketing Officer for a leading Digital Marketing Company in South Carolina, we closely collaborate with developers and real estate agencies and understand the rising concern over housing affordability in communities like Florence. Amid growing debates around short-term rentals (STRs) such as Airbnb, the city grapples with a limited housing supply and rising costs. While STRs support tourism and investment, they also tighten the long-term rental market, prompting calls for reform. Our marketing expertise underscores the value of transparent, inclusive communication to ensure Florence remains both economically vibrant and livable for its residents.

The Housing Crisis and STR Debate in Florence

Florence faces a housing shortfall, with only 35 affordable units per 100 low-income households and rents rising faster than wages. The city’s 1,200 STRs—concentrated near downtown and medical hubs—are viewed by many as contributors to dwindling rental availability. A proposed 2023 ordinance to restrict STRs remains under discussion in 2025, as the city weighs resident needs against tourism revenue. The issue highlights the tension between growth and affordability, making it a defining challenge for Florence’s future.

Perspectives of Interested Parties

Real Estate Agents

Agents in Florence recognize the dual impact of STRs. While they increase sales activity and attract investors, they limit options for first-time buyers and long-term renters. With home prices now averaging $260,000, affordability remains a top concern. Local agents advocate for balanced solutions—such as STR caps or tax incentives for long-term leasing—to protect inventory and maintain community stability. They stress the importance of marketing that reflects both economic realities and evolving housing policies.

Developers

Developers see Florence’s economic growth—fueled by healthcare and manufacturing—as an opportunity, but cite land costs and zoning restrictions as barriers to building affordable housing. They argue STR demand supports new construction, particularly mixed-use projects along I-95, but without subsidies, most units are priced beyond reach. Developers generally oppose outright STR bans, instead backing zoning flexibility and state funding for affordable projects that align with Florence’s $1.6 billion industrial expansion.

Government and Regulatory Bodies

The City of Florence is caught between managing housing access and protecting tourism, which brings in $200 million annually. The proposed STR regulation would convert about 15% of existing STRs into long-term rentals. While the city supports efforts to expand affordable housing, enforcement is complicated by legal challenges over property rights. Regional bodies like the Pee Dee Council of Governments seek more funding, but with only $10 million allocated in 2024, progress is incremental.

Greater Florence Community

Florence residents are deeply divided. Renters and younger families back STR restrictions to open up housing, citing models like Charleston’s 2023 reform. Tourism workers and homeowners worry that strict limits may depress property values and hurt small businesses. Advocacy groups such as Florence Forward call for clear policies on affordability, while residents push for more public dialogue and safeguards against gentrification. The community’s split reflects broader national housing tensions.

Social Media Buzz

Social media has amplified Florence’s housing debate. In mid-2025, X users revived a 2023 post about the STR ban proposal, sparking polarized discussions. Supporters emphasized the need for more long-term rentals, while opponents warned of economic fallout. One notable post mentioned a 10% decline in STR listings since the proposal, fueling speculation on its impact. Hashtags like #FlorenceHousing and #STRban continue to reflect ongoing public engagement and concern.

The Path Forward

Florence must find a balanced solution that safeguards affordability without undermining its economic drivers. Real estate professionals, developers, policymakers, and residents need to collaborate on fair, transparent policies. Smart regulation—such as STR zoning overlays, tax breaks for affordable housing, and public-private partnerships—can address key concerns. With open communication and community-centered planning, Florence can evolve into a model of sustainable urban development.

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